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This title was first published in 2003. Economists have had increasing success in arguing the merits of market-based approaches to environmental problems. By making polluting expensive, market-based approaches provide polluters with incentives to clean up, rather than mandates to stop polluting. These approaches include pollution taxes, transferable emissions permits and subsidies for pollution abatement. The purpose of this volume is to explore the situations where Command and Control (CAC) may not be all bad, and in fact might even have some advantages over market-based instruments (MBI).

The fourth edition is augmented by more than 70 new formulas. In particular, we have included some key concepts and results from trade theory, games of incomplete information and combinatorics. In addition there are scattered additions of new formulas in many chapters. Again we are indebted to a number of people who has suggested corrections, - provements and new formulas. In particular, we would like to thank Jens-Henrik Madsen, Larry Karp, Harald Goldstein, and Geir Asheim. In a reference book, errors are particularly destructive. We hope that readers who ?nd our remaining errors will call...

The fourth edition is augmented by more than 70 new formulas. In particular, we have included some key concepts and results from trade theory, games of incomplete information and combinatorics. In addition there are scattered additions of new formulas in many chapters. Again we are indebted to a number of people who has suggested corrections, - provements and new formulas. In particular, we would like to thank Jens-Henrik Madsen, Larry Karp, Harald Goldstein, and Geir Asheim. In a reference book, errors are particularly destructive. We hope that readers who ?nd our remaining errors will call...